Will positive corporate news change your stock story? That depends. If it hits the wires on, before or after a thermonuclear market meltdown, your stock price could rise or fall for no apparent reason other than market volatility. News today contagiously spills over across domains, influencing the general mood of investors and the market. That’s why media exposure may not always benefit a small cap stock.

The equity markets are no longer an easy source of capital and money is increasingly becoming more expensive. When capital becomes more expensive and the markets become a tough ground for funding, how do you find, evaluate and decide on the best financing options?

During downturns, there’s much more to gain by investing in, rather than pulling back on IR activities. Nobody knows when stocks will recover, however, we know that small cap stocks tend to bounce back quicker than their larger peers and they’ll gain faster in the recovery. That’s why during periods of market decline small caps need to be out on the circuit evangelizing and building interest in their company.

The market continues to behave in uncertain and unpredictable ways testing our nerves and our optimism. Leaning into this uncertainty with a growth mindset might help you cope. What seem like challenges become opportunities. All it takes is a news lens with which to view the world. Leading in times of volatility takes courage.

We attended the IR Magazine Forum—Small Cap 2022 in New York City this week. Joined by over a hundred CEOs, CFOs and IROs, we were all looking for insights into navigating today’s macro-driven investing climate. The mood was rather somber compared to year’s past and we heard the same refrain on repeat: check your investment thesis and your value proposition.

The “undervalued” explanation to all that ails a stock is a common refrain we hear from management of small cap companies—especially during volatile markets. But, don’t fall for it. It’s a trap.